In a strategic move following significant layoffs, Twitter CEO Jack Dorsey announced he will allocate a portion of his shares to current employees.
- The decision comes after Twitter laid off approximately 8% of its workforce, primarily affecting engineering roles, to address financial losses.
- Dorsey will give away one-third of his shares, valued at around £130 million, to an employee equity pool for awards and bonuses.
- The media and public response to Dorsey’s gesture has been divided, with some praising his leadership and others questioning the timing.
- Dorsey’s substantial financial interest in Square remains intact, highlighting his continued influence in the tech industry.
Following the recent layoffs affecting 8% of Twitter’s workforce, CEO Jack Dorsey has made headlines by pledging a significant portion of his personal stock to benefit the remaining employees. This decision comes amidst efforts to address a historical financial shortfall totaling nearly $2 billion over Twitter’s nine-year tenure. The layoffs primarily targeted engineering staff as part of a broader strategy to streamline operations and reduce expenses.
Dorsey announced through his Twitter account that he intends to transfer one-third of his Twitter shares into the company’s employee equity pool. This move is valued at approximately £130 million, representing exactly 1% of Twitter’s total equity. However, rather than being distributed equally among the 4,000 staff members, these shares will be allocated for rewards, bonuses, and employee recognition schemes.
The timing of Dorsey’s announcement has sparked a range of responses. Some media outlets, like Re-code Magazine, have labeled the move as a ‘morale boost’ project, suggesting it might be an attempt to alleviate internal sentiment following the layoffs. Critics have echoed this skepticism, albeit with a more cynical tone, on social media. A Twitter user, @schwa, commented directly to Dorsey, implying that the timing was more than coincidental, with a quip about fixing morale issues post-layoffs.
Conversely, other employees and followers have expressed gratitude for what they perceive as a demonstration of compassionate leadership. User @bohan praised Twitter’s work environment, attributing it to Dorsey’s generosity and leadership style, highlighting that steward leadership remains paramount.
Despite his generous offer to Twitter staff, Dorsey’s financial standing remains robust due to his substantial holdings in another venture, Square. As the founder and CEO of this electronic payments company, Dorsey owns about 24% of Square, which recently filed for a public offering. This alternative investment is valued at around $1.6 billion, ensuring that his personal financial health remains unaffected by the Twitter stock allocation.
Jack Dorsey’s strategic allocation of shares aims to bolster employee morale while maintaining a significant financial foothold in the tech industry.
